Marketers were concerned about the potential impact on their business after Facebook’s stock jumped 10% in Wednesday trading hours after the company announced its first-quarter user numbers and better-than-expected earnings.
In the first three months of the year, Facebook grew 18% year-on-year to $ 17.74 billion, although it said it experienced “a significant drop in advertising demand as well as a drop in prices.” “Our announcements, in the last three weeks of the first quarter of 2020.”
Meanwhile, its user numbers and engagement have increased as individuals who are lonely to communicate with friends and family tend towards the company’s product. Its daily and monthly active user count for the Core Facebook app has doubled year-on-year, reaching 1.73 billion and 2.6 billion respectively.
The number of people active in Facebook’s “products” family, including WhatsApp and Instagram, surprised 2.99 billion people a month in Q1.
Facebook said in a press release that “statistics reflect” increased engagement with people around the world and that our products are being used to connect with the people and organizations they care about. “
Facebook’s financial results combine with a trend for Internet companies with advertising businesses from Coronavirus in March but have been able to exceed analysts’ expectations for strong January and February results.
In March, Google announced a Q1 report card that would make investors happy, despite a “significant slowdown in earnings.”
Facebook took the unusual step of releasing some financial information for its second quarter on Wednesday. Ad revenues in the first three weeks of April were unchanged from a year earlier, it says – in contrast to its usual double-digit growth, but an indicator that the business is handling the crisis.
Here are the key figures Facebook reported for Q1, as well as what Wall Street expects:
- Revenue: 74 17.74 billion, 18% per annum (48 17.48 billion)
- Earnings per share (GAAP): 71 1.71 (75 1.75 expected)
- Daily Active Users: 1.73 Billion, 11% YoY
- Monthly active users: 2.6 billion, 10% per year
Facebook said it will return to some cost plans due to the coronavirus this year. Capital expenditures range from $ 14 billion to $ 17 billion, the company said.
“Given the strong engagement growth and related demands on our infrastructure, this year’s CAPEX decrease should be seen as a distraction in 2021 rather than a saving,” Facebook said.
The company said it would take steps to cut costs in travel and marketing, as well as reduce its recruitment – although Facebook said it would take strategic and key roles in the coming months.